Question about Hedging Forex - Help Needed
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I am a trader from the U.S. and since no forex hedging is allowed in the U.S. I would like to know if there is a way to create a hedge for any spot forex currency pairs that is hedged 100%? I only know of 3 possible ways, but I have not tried them so I was wondering how effective they are?
1. I could hedge with futures, 2. with options on futures, or 3. with 2 other currency pairs to create a synthetic pair. But what I need to know is if these approaches hedge my position on a 1 to 1 ratio, where the hedge is perfect? I'm not sure if the futures move 100% in tandem with the spot pair, and with options I have to worry about the delta changing as price moves, and with the synthetic pairs, I'm not sure how strongly it hedges. Any help would be GREATLY appreciated! Thanks.